Problem #13

Distribution of Profits or Losses Based on Partners’ Agreement

Pasia, Te, and Ocenar each receive a P70000 salary, as well as 15% interest on their respective average investment of
P200000, P100000, and P400000. If they share remaining profits and losses in a 4:3:2 ratio, respectively, by how much
would Ocenar account increase or decrease (indicate a decrease by placing parentheses), assuming: (a) profit of
P405000, (b) profit of P270000, and (c) loss of P315000. In addition, calculate (d) Ocenar share of a P350000 profits if
profit and loss distribution were based instead solely on the ratio of average capital investments.

  Pasia Te Ocenar Total

average investment 200000.00 100000.00 400000.00 700000.00
salary 70000.00 70000.00 70000.00 210000.00
interest 15% 30000.00 15000.00 60000.00 105000.00
remainder 40000.00 30000.00 20000.00 90000.00
total profit 140000.00 115000.00 150000.00 405000.00

  Pasia Te Ocenar Total

average investment 200000.00 100000.00 400000.00 700000.00
salary 70000.00 70000.00 70000.00 210000.00
interest 15% 30000.00 15000.00 60000.00 105000.00
remainder -20000.00 -15000.00 -10000.00 -45000.00
total profit 80000.00 70000.00 120000.00 270000.00

  Pasia Te Ocenar Total

average investment 200000.00 100000.00 400000.00 700000.00
salary 70000.00 70000.00 70000.00 210000.00
interest 15% 30000.00 15000.00 60000.00 105000.00
remainder 280000.00 210000.00 140000.00 -630000.00
- -
total profit 180000.00 125000.00 -10000.00 -315000.00

ratio 0.29 0.14 0.57

  Pasia Te Ocenar Total

average investment 200000.00 100000.00 400000.00 700000.00
salary 70000.00 70000.00 70000.00 210000.00
interest 15% 30000.00 15000.00 60000.00 105000.00
remainder 10150.00 4900.00 19950.00 35000.00
total profit 110150.00 89900.00 149950.00 350000.00